Monday, October 10, 2005

SAP loses big deal to...Mincom?

The deal is Newmont Mines in Australia, and the winner is Mincom. Both SAP and Mincom were incumbent vendors, with Mincom installed at Newmont, and SAP installed at Normandy Gold, which Newmont recently acquired.

Mincom, which is a vendor of enterprise asset management (EAM) systems, is not usually thought of as a competitor to SAP. But in capital intensive industries, such as mining, EAM systems are effectively the equivalent of ERP systems.

The mining industry in Australia, which is undergoing an economic boom, is currently a battleground for SAP and other vendors. Although SAP lost the deal at Mincom, it is gaining additional sales at BHP Billiton, another natural resources firm with market capitalization of $90 billion U.S.

Mincom's win at Newmont shows that there is still plenty of competition for Tier I vendors such as SAP and Oracle, even at the top end of large enterprises. The key is for vendors to pick the verticals in which they can win.

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